From: Mike Lorrey (mlorrey@yahoo.com)
Date: Mon Sep 09 2002 - 14:32:10 MDT
--- Regina Pancake <regina@appliedfx.com> wrote:
> >
> So Out-vendoring is the way to go. Send it out and encapsulate the
> cost. And if you can send it over-seas, so much the better. Its so
> much
> cheaper. Makes for a much easier figure sheet because it is
> quantifiable.
> Not messy. If that worker screws up, you eat it. It is illegal to
> take it
> out of their pay check and they can't work it off for free cause
> that's illegal too.
THis is inaccurate. If they are paid on a piecework basis rather than
an hourly basis, you can have them work off shoddy quality. They only
get paid for pieces that pass quality inspection, or else they must fix
those that don't pass on their own time.
A large percent of the manufacturing positions at Sturm, Ruger, & Co,
Inc. are piecework positions, which is why it produces such high
quality work for such low prices, while individuals who are productive
in many cases do in fact earn more income than any company engineer and
much of management.
With a current workforce of about 2,000 nationwide, they've produced
since their founding over the last 50 years over 20,000,000 firearms,
all at prices affordable to a blue collar worker and with lifetime
warranties on their products. The company has zero debt.
>
> I had a learning experience about a month ago, with manufacturing. We
> were looking into getting some items produced.
> What's known as a "Works like, Looks like" model.
> Shopped it around America to get prices on injection molding. not
> assembled. Just the plastic housing.
> The lowest bid I think was $51,000.00 just for the tooling. Then I
> think it
> was 75 cents each for 100,000 units. Then another $51,000.00 for a
> new mold. Because they wear out.
> Alrighty then. We went and checked into Hong Kong.
> $8000 for the same tooling, replacement tooling after 250,000 units
> run pennies per unit. Where would you go?
I'd get the tooling done in hong kong and ship it to the US for
manufacturing the parts, with outsourcing the final assembly as well.
Tooling is expensive, no doubt. Never pay a manufacturer to make your
tooling. Have them give you a spec on what sort of tooling they need
and get it done yourself, and supply them with the finished tooling.
You can only make outsourcing work if you arrange all components of the
virtual corporation yourself.
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